“The Performance of Private Equity and non-Private Equity Backed Initial Public Offerings”: A Study of Underpricing and Long-Run Stock Performance on the European Stock Exchanges
The analysis shows that underpricing exists on the European market during 1999-2010 and that PE backed firms usually experience a lower underpricing than non-PE backed companies. Maturity, earnings management and company size are variables explaining underpricing for PE firms. For non-PE backed IPOs, earnings management is the only statistically significant variable explaining the underpricing. In
